Indian Prime Minister Narendra Modi touched down in Ethiopia on Tuesday, kicking off a significant two-day tour of the East African nation.
Upon arrival, Modi held talks with his Ethiopian counterpart, Abiy Ahmed. The visit underscores Ethiopia’s growing importance to New Delhi as a key economic and geostrategic partner in Africa, particularly as India seeks to expand its influence amidst ongoing competition with China.
A Warm Welcome in Addis Ababa
Following the bilateral meeting, the two leaders engaged with members of the Indian diaspora in Addis Ababa. The atmosphere was celebratory, with Modi greeted by lines of supporters waving Indian flags and chanting his name.
The welcome festivities included a traditional Indian dance performance. Later, at the Prime Minister’s hotel, local Ethiopian artists performed songs in Hindi, showcasing the cultural connection between the two nations.
In a released statement, Prime Minister Modi confirmed he is scheduled to address a joint session of the Ethiopian parliament later during his visit.
Strategic and Economic Interests
For Indian policymakers, Ethiopia represents a critical foothold on the continent. The country hosts the African Union headquarters and has recently gained significant political weight following its 2024 entry into the expanded BRICS group.
Economically, India already maintains a robust presence in the region, with over 175 Indian companies operating in the country, primarily within the textile sector. While early investments in agriculture faced fiscal and operational hurdles, Indian ambitions have now pivoted toward a new frontier: the strategic mining sector.
The Push for Critical Minerals
A recent study by the Indian Embassy in Addis Ababa highlighted Ethiopia’s largely untapped reserves of critical minerals and rare earth elements. These resources are vital for the production of renewable energy technology, batteries, and semiconductors.
Despite existing regulatory and infrastructural challenges, New Delhi views cooperation in mining as a major opportunity to secure key supply chains.
Looking Ahead: New Agreements
As Ethiopia seeks to attract further investment in pharmaceuticals, agro-processing, and light industry, India is looking for broader access to African markets through the African Continental Free Trade Area (AfCFTA).
The visit is expected to conclude with the signing of several new agreements, deepening the economic bond between the two emerging powers.
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